United Kingdom GDP Annual Growth Rate

The OBR has lowered its UK growth forecast for this year to 1.2 percent on Wednesday from 1.6 percent in last October’s budget, due to uncertainty surrounding Brexit negotiations and slowing global growth. Still, the OBR's projection for 2020 was unchanged at 1.4 percent; while that for 2021 is now seen at 1.6 percent, above previous estimates of 1.4 percent. Latest quarterly data showed the UK economy expanded 1.3 percent year-on-year in the fourth quarter of 2018, down from a revised 1.6 percent in the previous period and slightly below market expectations of 1.4 percent. It has not been weaker since the second quarter of 2012 and continues its relatively subdued performance over the last year. Considering 2018 full year, UK GDP increased by 1.4 percent, the weakest it has been since 2009. GDP Annual Growth Rate in the United Kingdom averaged 2.45 percent from 1956 until 2018, reaching an all time high of 9.70 percent in the first quarter of 1973 and a record low of -6.10 percent in the first quarter of 2009.

GDP Annual Growth Rate in the United Kingdom is expected to be 1.10 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in the United Kingdom to stand at 1.20 in 12 months time. In the long-term, the United Kingdom GDP Annual Growth Rate is projected to trend around 1.70 percent in 2020, according to our econometric models.

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UK Q4 GDP Annual Growth Below Forecasts

The UK economy expanded 1.3 percent year-on-year in the fourth quarter of 2018, down from a revised 1.6 percent in the previous period and slightly below market expectations of 1.4 percent. It has not been weaker since the second quarter of 2012 and continues its relatively subdued performance over the last year.

On the expenditure side, household expenditure rose 1.9 percent in the fourth quarter (vs 1.8 percent in Q3); and government spending advanced 0.8 percent (vs -0.5 percent in Q3). By contrast, fixed investment dropped 1.4 percent (vs -0.3 percent in Q3) as business investment slumped by 3.7 percent, the largest fall since the first quarter of 2010.

Considering 2018 full year, UK GDP increased by 1.4 percent, the weakest it has been since 2009. Household consumption and government spending both contributed positively to GDP growth. There was also a positive contribution of gross capital formation in 2018, although this reflects movements in inventories and valuables, as gross fixed capital formation was flat last year. It was the first time that there had been no increase in capital investment since 2009, in which the UK was in the midst of the effects of the financial crisis. Having provided a boost to GDP growth in 2017, net trade fell in 2018 – a possible reflection of the waning effects of sterling’s depreciation and a slowing in momentum in the global economy.

UK Q3 GDP Annual Growth Confirmed at 1.5%
The gross domestic product in the United Kingdom expanded 1.5 percent year-on-year in the third quarter of 2018, unrevised from the preliminary estimate and up from 1.4 percent in the previous period. It was the strongest growth rate since the last quarter of 2017 mainly driven by household consumption while business investment dropped the most since the first quarter of 2016 and net trade contributed negatively. Published on 2018-12-21

UK Q3 GDP Annual Growth Strongest in 1 Year
The gross domestic product in the United Kingdom expanded 1.5 percent year-on-year in the third quarter of 2018, up from 1.2 percent in the previous period and matching market expectations. It was the strongest pace of expansion since the third quarter of 2017 mainly driven by household consumption and exports while business investment dropped the most since the first quarter of 2016.Published on 2018-11-09

UK Q2 GDP Annual Growth Revised Lower
The gross domestic product in the United Kingdom expanded 1.2 percent year-on-year in the second quarter of 2018, revised from a preliminary estimate of 1.3 percent and little-changed from a near six-year low of 1.1 percent in the previous period.Published on 2018-09-28

UK GDP Grows 1.2% in Q2
The gross domestic product in the United Kingdom expanded 1.3 percent year-on-year in the second quarter of 2018, little-changed from a near six-year low of 1.2 percent in the previous period and matching market expectations. Household consumption rose the least since the first quarter of 2012.Published on 2018-08-10

United Kingdom GDP Annual Growth Rate

The United Kingdom is the sixth largest economy in the world and the second largest in Europe after Germany. The Services sector is the most important and accounts for 79 percent to total GDP. The biggest segments within Services are: government, education and health (19 percent of total GDP); real estate (12 percent); professional, scientific and technical activities and administrative and support services (12 percent); wholesale and retail trade (11 percent); and financial and insurance (8 percent). Industry accounts for 21 percent of the GDP and the largest segments within this sector are: manufacturing (10 percent of total GDP) and construction (6 percent). The Agriculture sector accounts for only 1 percent of GDP. This page provides the latest reported value for - United Kingdom GDP Annual Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. United Kingdom GDP Annual Growth Rate - actual data, historical chart and calendar of releases - was last updated on March of 2019.